The bond-related formulas and functions in the previous chapters assume that every period is the same length. For example, that coupon payments occur every three, six, or twelve months. Some bonds have irregular first or last periods, where the payment dates don’t fit any of those patterns. When you want to calculate the price of a bond with an odd last period, use the ODDLPRICE function.
- [Instructor] The bond related formulas and functions…in the previous chapters assume…that every period is of the same length.…For example, that coupon payments occur every…three, six, or 12 months.…Some bonds have irregular first or last periods though,…where the payment dates don't fit any of those patterns.…So Excel includes a set of functions…you can use to evaluate those securities.…In this movie, I will show you…how to calculate the yield of a security…with an odd last period.…As my sample file,…I will use OddLastPrice_06_03,…which is a workbook you can find in the chapter six folder…of the exercise files collection.…
For this investment we know the yield…and other information.…And what we want to do is calculate the fair market value…or price for this investment.…We need to know a lot of information.…The first is the settlement date.…That is the date that you, the investor,…take possession of the security.…Next is maturity date.…That's the date the investment ends…and you're paid what you're owed.…Last coupon date is the date of the last coupon payment.…
- Analyzing loans, payments, and interest
- Calculating depreciation
- Determining values and rates of return
- Calculating bond coupon dates and security durations
- Calculating security prices and yields
- Calculating prices and yields of securities with odd periods
- Analyzing simulation results
Skill Level Intermediate
1. Analyzing Loans, Payments, and Interest
2. Calculating Depreciation
3. Determining Values and Rates of Return
4. Calculating Bond Coupon Dates and Security Durations
5. Calculating Security Prices and Yields
6. Analyzing Simulation Results
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